AI Deals Propel Nasdaq as Uncertainty Looms Over Federal Reserve's Strategy

The markets ended on a mixed note as the S&P 500 and the Nasdaq registered gains chiefly powered by artificial intelligence deals. Investors appeared cautiously optimistic despite the lacking clarity in the Federal Reserve's monetary strategy, caused by a scarcity of official economic data from the U.S. authorities.

The Nasdaq's performance was buoyed by significant tech news, including Amazon's $38 billion deal with OpenAI to utilize its AWS cloud infrastructure for AI applications, lifting Amazon's shares by 4%. Nvidia also saw a 2.2% rise following former President Trump's announcement to restrict its advanced chips to domestic companies.

The U.S.-China trade war showed signs of respite over the weekend, adding to the positive market sentiments. Conversely, uncertainty looms large due to the ongoing government shutdown, hindering economic indicators critical for Federal Reserve's policy direction.